Ceredigion MP Ben Lake has written to the UK Chancellor calling for “consistent, transparent and fair” funding for Wales, after saying that the funding package for Northern Ireland “sets a precedent for a review” of the current Barnett formula for Wales.

In his letter, Mr Lake said that while he “welcomes the restoration of the devolved institutions” in Northern Ireland after a long period of uncertainty, he noted that “the executive at Stormont will be receiving a funding package of more than £3.3 billion, including over £1bn to support public services.

“As in Northern Ireland, public services in Wales need urgent financial support,” Mr Lake said.

“Welsh councils report that they are facing a cumulative funding gap of up to £1.294bn by 2026/27.

“As a result of this shortfall, councils are having to consider large increases in local taxation in addition to significant cuts to the services they provide.”

Mr Lake requested the Treasury “urgently commits to providing an equivalent package of support to that offered to Northern Ireland to support county councils and public services in Wales.”

“If such a package were to replicate the Northern Ireland offer per capita,” Mr Lake said, “I understand that public services in Wales would receive around £5.4bn.”

“I also note that the package for Northern Ireland includes an uplift of 124 per cent in Barnett Formula finding from 2024/25.

“This adjustment has been justified based on an assumed precedent of a Welsh funding floor of 115 per cent.

“But this 115 per cent is not based on Wales’ current level of assessed need, but rather on estimates made by the Holtham Commission in 2010 that drew from the 2001 census data.

“Since then, Wales’ needs and population have changed radically and urgently require review.”